Vedanta bags first gold mining lease at auction

Anil Agrawal-led Vedanta Resources Inc bagged India’s first gold mining lease auctioned by the Chhattisgarh government.

The London-based firm won the bidding for the Baghmara (Sonakhan) gold mine in Chhattisgarh, the auctioning process for which ended late on Friday night. The global mining company will be granted a prospecting-cum-mining lease, a senior officer of the state government said.

“Vedanta Resources Inc quoted the highest bid of 12.55 per cent of the IBM price of Rs 74,712 of troy ounce (one troy ounce is 31.10 gm) to win the gold mine lease,” state mines secretary Subodh Singh told reporters here on Saturday. A total of 160 bids were submitted.

The auction will generate a revenue of Rs 80 crore to the state exchequer, besides royalty of Rs 25 crore.

The Baghmara gold mine, spread over 607 hectares in Baloda Bazar-Bhatapara district, nearly 130 km from Raipur, has an estimated reserve of 2,700 kg of the yellow metal.

The mine is the oldest explored gold deposit in central India and is considered commercially viable.

“The exploration of the gold mine will contribute to India’s target to reduce gold imports, besides promoting jewellery industry in the region,” a senior officer said.

“The e-auction ensured transparency in the bidding process besides speedily accomplishing the mining lease allocation,” chief minister Raman Singh said.